Note 23 — Chapter II · THE OLD ECONOMY AND THE POST-WAR STATE

In German East Africa we have a case in which practically the whole of the property in land was confiscated. The whole European population were evicted from the farms and plantations—many, of course, representing the labour of a lifetime—and deported. A visitor to the colony describes it as an empty shell, its productivity enormously reduced. In contradistinction, however, one welcomes General Smuts’s statement in the Union House of Assembly in regard to the Government’s intentions as to German property. He declared that the balance of nine millions in the hands of the Custodian after claims for damages had been recovered, would not be paid to the Reparations Commission, as this would practically mean confiscation. The Government would take the nine millions, plus interest, as a loan to South Africa for thirty years at four per cent. While under the Peace Treaty they had the right to confiscate all private property in South-West Africa, they did not intend to avail themselves of those rights. They would leave private property alone. As to the concessions, if the titles to these were proved, they would also be left untouched. The statement of the South African Government’s intentions, which are the most generous of any country in the world, was received with repeated cheers from all sections of the House.